VW gambles on ride-hailing to break through African roadblocks

Iradukunda quit her old job as a secretary in a law firm to go to work behind the wheel of a new Polo for VW's app-driven ride-hailing service. — Reuters

JOHANNESBURG/KIGALI: When Volkswagen's Africa boss Thomas Schaefer set out to conquer the continent, he quickly realised he needed more than a flashy new product. He needed a new business model.

Study after study showed the same thing: there was no demand for new cars. Low purchasing power and a lack of financing put them out of the reach of most Africans, while competition from used imports gave buyers a cheaper alternative.